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Board of Governors of the Federal Reserve System
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Financial Accounting Manual

Chapter 6: Reporting Requirements

 

 

60.01 General

This chapter contains instructions for reports arranged according to the frequency of each report. Weekly payments of Reserve Bank earnings to Treasury and monthly reports of currency holdings by Reserve Banks are covered in paragraphs 60.20-30. Quarterly reports of earnings and of profit and loss entries and penalties for deficiencies in required balances are covered in paragraphs 60.50-70 and the annual reports, which are mainly for publication, are covered in paragraphs 60.92-94. A summary of all reporting requirements is contained in Table 60.99.

60.10 Interdistrict Settlement

The centralized accounting system captures the data needed to conduct the daily settlement between Districts. Once settlement has been effected, the IAS system will post the appropriate entries directly to each Reserve Bank's records.

60.11 Effect of Holiday on Clearings

The Federal Reserve System observes the following holidays:

  • New Year's Day - January 1
  • Birthday of Martin Luther King, Jr. - Third Monday in January
  • Washington's Birthday - Third Monday in February
  • Memorial Day - Last Monday in May
  • Independence Day - July 4
  • Labor Day - First Monday in September
  • Columbus Day - Second Monday in October
  • Veterans' Day - November 11
  • Thanksgiving Day - Fourth Thursday in November
  • Christmas Day - December 25

No settlement will take place on the above standard holidays. For holidays falling on Saturday, Federal Reserve Banks and Branches will be open the preceding Friday. For holidays falling on Sunday, all Federal Reserve offices will be closed the following Monday. When a Federal Reserve Bank or Branch closes for a non-standard holiday or unexpectedly, such as in the event of a local disaster, and is unable to participate in the clearing, the debits/credits for that office should be included with the debits/credits for the following business day and reported on the balance sheet in the line item "Due to other F.R. Banks - collected funds" (220-075).

60.20 Interest on Federal Reserve Notes

Since 1947, the Board of Governors has required that the Reserve Banks remit to Treasury, as interest on Federal Reserve notes, all net earnings after providing for dividends and the amount necessary to equate surplus with capital paid-in. Effectively, this policy sets Reserve Banks surplus levels and requires, as a nondiscretionary expense, each Reserve Bank to remit all residual net earnings to the Treasury.

The Board of Governors, under authority of Section 16 of the Federal Reserve Act, has established the following described rate of interest on the outstanding Federal Reserve notes of each Bank less the amount of gold certificates pledged with the Federal Reserve Agent:

The interest rate on Federal Reserve notes not covered by gold certificates pledged with the Federal Reserve Agent as collateral security for such notes shall be the result of the division of (a) the net earnings of the Federal Reserve Bank after provision for dividends on its outstanding Capital Paid In and for adjustments necessary to equate the amount of its Surplus with the amount of its Capital Paid In, by (b) the daily average amount of Outstanding Federal Reserve Notes of the Bank after deducting the daily average amount of gold certificates pledged with the Federal Reserve Agent as collateral security for such notes.

Daily Accrual

Interest on Federal Reserve notes is accrued each day at an amount equal to the end-of-day balance in FR 34 account 330-275, Undistributed Net Income. After recording this daily accrual, the balance in FR 34 account 330-275, Undistributed Net Income, should be zero. The daily entry is illustrated as follows:

Dr / Cr:
Interest Paid on Federal Reserve Notes (330-200) $xxx
Cr / Dr:
Liability / Deferred Asset for Interest on FR Notes (240-925) $xxx

Weekly Remittances

The remittance to Treasury should be made each Wednesday or on the next business day if Wednesday is a holiday. The amount of the remittance should be equal to the lower of the liability (credit) balance in FR 34 account 240-925:

  1. for the previous Wednesday (or the previous Thursday if the previous Wednesday was a holiday), or
  2. for the business day preceding the remittance.

If, however, either of the two balances described above is zero or if the balance is a debit, no remittance should be made. In such cases, remittances to the Treasury should not resume until sufficient net earnings have been realized to return the balance in FR 34 account 240-925 to a liability (credit).

A Reserve Bank should consult the RBOPS Financial Reporting and Control Section if it is aware of a significant entry on the remittance day that would have affected the remittance amount had it been recorded on the previous day.

Special procedures exist for the first remittance of each calendar year (see paragraph 60.25 for year-end procedures).

60.25 Year-end Procedures

The income, expense, and other capital accounts on the year-end FR 34 should include all amounts applicable to the year up to and including December 31, based on the best data available to the Reserve Bank at December 31. The net income on the FR 34 at December 31 should be fully distributed, with surplus being adjusted to the level of paid-in capital. The entries necessary to equate surplus with the amount of paid-in capital are described in paragraph 12.10, and the entries to accrue for Interest on Federal Reserve notes are described in paragraph 60.20 above.

The balance in account 240-925, if a credit, represents the amount of the first remittance to Treasury in January, which will be made on the first Wednesday in January or on the next business day if Wednesday is a holiday. Similar to the weekly procedures described above, losses or other circumstances that occur in the intervening week may require adjustment to the remittance amount. RBOPS Financial Reporting and Control Section should be contacted if the Bank determines that this remittance will be different than the amount recorded in FR 34 account 240-925 as of December 31.

The balance in account 240-925, if a debit, represents the amount of net earnings that a Reserve Bank will need to realize before remittances to the Treasury resume. In this case, the Bank will not make a remittance to Treasury on the first Wednesday in January.

On the January year-end closing date designated by the Board, the previous year's income and expenses and other capital accounts data should be removed from the balance sheet. The amounts removed should be final data for the year as determined by the Reserve Bank and should agree dollar for dollar with the results for the year, which are reported elsewhere, such as in the annual PACS reports and the reports on income from services.

In some instances, due to the availability of additional information, adjustments to year-end balances may be identified subsequent to December 31 but prior to removing the previous year's income and expenses and other capital accounts data from the balance sheet. Such adjusting entries should be functioned to December 31 balances during the closing process when they serve to more accurately and completely reflect the financial condition of the Reserve Bank. Communication of these adjustments should be made to RBOPS Financial Reporting and Control Section through submission of the Adjusted Trial Balance reports (ATB). As a practical matter, the annual year-end accounting instructions (that include the financial statement shell including footnotes) are sent to the Banks during the year-end process to provide additional detailed reporting instructions.

60.30 Currency Held by Federal Reserve Banks

Form FR 415 shows each type of paper money and coin held by the Reserve Bank at the end of the month. The report combined for the District is due at the Board no later than the 6th business day of the following month. The data is used for calculating currency in circulation and must agree with the appropriate FR 34 accounts and figures reported to the U.S. Treasury on form TFS 4133-Paper Currency On-Hand Report.

60.50 Income Report-General

In general, Federal Reserve receipts are derived as described below:

  1. Revenues-Receipts based on fee schedules or price structures established for priced services as defined in the Monetary Control Act or as prescribed by the Board of Governors and receipts for services incidentally related to priced services where the dollar amount of such receipts is material.
  2. Income-Receipts representing interest on loans to depository institutions or others, penalties on reserve account deficiencies or overdrafts in reserve or clearing accounts, interest from System Open Market Account (SOMA) and foreign currency holdings, and other receipts specifically identified in paragraph 12.20 other than income from services.
  3. Reimbursements-Receipts representing recoupment of expenses incurred in performing prescribed activities as Fiscal Agent for the U. S. Treasury and other Federal agencies.
  4. Recoveries-All receipts other than those defined above as Revenue, Income and Reimbursements, including receipts that are not material in amount received in connection with services incidentally related to priced services.

The detailed listing of items of income recorded to account 330-025 (FR 95) for each quarterly and annual reporting period should be made available to the RBOPS Financial Reporting and Control Section through submission of the ATB for the period. The ATB must be submitted by the date indicated in instructions issued by the RBOPS Financial Reporting and Control Section for each period.1 If an error is found in the amount of income reported for the current year, the necessary correcting entries should be made to the accounts in which the error occurred.

The following procedure should be used in accruing earnings on assets:

  1. Calculate earnings on all types of earning assets, except SOMA assets (see paragraph .70), for each calendar day on the basis of holdings of such assets at opening of business on such day or at close of business on the last preceding business day if the day in question is a Sunday or a holiday. (Regarding advances to member banks, accrual of earnings based on holdings at the opening of business should be calculated at the interest rate in effect on the previous day.) Earnings in nominal amounts may be credited when received except that all earnings, regardless of amount, should be accrued on the last day of the year.
  2. Make entry of such accruals on books of the Federal Reserve Bank, either daily or as of each Wednesday, and on the last day of the month, provided that:

    1. If Wednesday is a holiday, entries made for Tuesday shall include accruals for one day's earnings on Tuesday's opening balance and one day's earnings on Tuesday's closing balance, except when January 1 falls on a Wednesday.
    2. If the last day of the month is a non-business day, entries made for the last business day shall include accruals for any day or days thereafter during the calendar month on which the Federal Reserve Bank will be closed. For example, should the 29th day of the month fall on a Friday, entries for accrual of earnings on Friday the 29th would include one day's earnings on the opening balance on that day, and two days' earnings on the closing balance of the 29th, assuming a 31 day month.
  3. If the first day of the month is not a business day, entries of accruals on the first business day shall include accruals for the day or days prior thereto within the calendar month on which the Federal Reserve Bank was closed. If entry of accruals is not made daily, the entry made on the first Wednesday of the month should include accruals for any prior day or days within that calendar month.
  4. In any calculation of average rates of earnings on assets, use holdings as of the close of business for each day included in the period under consideration in computing average daily holdings.

60.60 Profit and Loss Statement

A detailed listing of items of profit and loss items recorded to account 330-100 for each quarterly and annual reporting period (FR 411 for quarterly periods and FR 657 for annual periods) should be made available to the RBOPS Financial Reporting and Control Section through submission of the ATB for the period. The ATB must be submitted by the date indicated in instructions issued by the RBOPS Financial Reporting and Control Section for each period.2 Amounts reported on the detailed listing of profit and loss items should reflect (1) the amounts for the head office and Branches combined, and (2) the net for each category except that recoveries of losses on shipments of money should be listed under "Additions" and losses on shipments of money should be listed under "Deductions."

A brief description of the profit and loss account is given in connection with the discussion of the Balance Sheet in Chapter 1. The profit and loss account is intended primarily to cover items for which no provision is made in current income or expenses. These include realized gains and losses on sales of securities and on foreign currencies, profit or loss on the sale of real estate (originally acquired for potential Bank use), the write-off of stale officers' and certified checks (paragraph 10.80), losses that are sustained in the handling or transportation of currency, recoveries and unrealized losses on the value of other real estate (originally acquired for potential Bank use) held for sale, and gains or losses on the sale of works of art. The account should not normally be used to adjust prior year income or expenses except for the correction of prior year accounting errors when the amount would seriously distort income or expenses of the current year. Entries to the account for prior year items may be made only with the prior approval of the RBOPS Accounting Policy and Operations Section.

The profit and loss account should not include dividends and rebates on insurance policies or any additional premium payments on worker's compensation or other insurance regardless of the year for which the refunds or additional payments apply. Such amounts should be entered to current year income or expenses. Other items from the previous year, which should normally be applied to current year income or expenses rather than profit and loss, are receipts from vending machines, refunds from courier contracts, adjustments for the difference between accounts payable and the actual billings, and adjustments for the difference between accrued income from services and actual billings.

The profit and loss account should also exclude losses arising from the ongoing operations of the Reserve Banks. Any such losses should be charged to current expense.

60.70 Charges Assessed and Waived for Deficiencies in Required Balances3

60.90 Financial Results of Operations

Preliminary financial results of operations for each annual period should be made available to the RBOPS Financial Reporting and Control Section as follows:

  1. FR 657-Reserve Banks should make data, which agrees to the FR 34 as of November 30 of each year, available in the Lawson ATB by the fifth business day subsequent to November 30. Each Reserve Bank should inform the RBOPS Financial Reporting and Control Section of any large or unusual deductions that are anticipated during the last month of the calendar year.
  2. FROP-Reserve Banks should make data that agree to the FR 34 as of December 31 available in the Lawson ATB by 1:00 p.m. Eastern time on the third business day of the year. Data should include amounts relating to the following, unless otherwise requested:
Code Description
EARL - Earnings from loans to DIs
EDGE - Earnings from acceptances
ESPY - Earnings from U.S. Government securities--System account
EPPA - Earnings from other U.S. Government securities
EFAC - Earnings on foreign currencies
ELSE - Income from services
ETCH - All other income
EACH - Total current income
EVER - Operating expenses
EPER - System net periodic pension cost
ETER - Cost of earnings credits
EIOR - Cost of interest on reserves
EARN - Current net income
EBID - Net additions or deductions
ERID - Cost of Unreimbursed Treasury services
ENID - Assessments for expenditures of Board of Governors
EGON - Assessments for cost of F. R. currency
EAST - Net income before payments to U.S. Treasury
n.a. Change in funded status of benefit plans
n.a. Comprehensive income before payment to U.S. Treasury
EYRE - Dividends paid
EWES - Interest on Federal Reserve notes
EVEN - Transferred to/from surplus and change in AOCI
TOME - Paid-in capital December 31, XXXX
TORK - Surplus December 31, XXXX
TORK2 - Surplus January 1, XXXX

60.92 Expense Report

Annual expense information is reported on form FR 96, classified by object of expense. This annual information should be made available in the Lawson ATB to the RBOPS Financial Reporting and Control Section by the designated January date as specified in special instructions from the Board. This early report is used to prepare the statement of income and expenses of the Federal Reserve Banks in the Board's Annual Report. The amount reported for net expenses should agree with the same item reported in annual Profit and Loss information on the ATB.

60.94 Real Estate Reporting Requirements-Annual and Special

This section provides instructions for the preparation and submission of accounting reports FR 612 and FR 892.

Book Value of Bank Premises or Other Real Estate

Form FR 612 is a summary of changes in the book value of Bank premises and other real estate and should be submitted to the RBOPS Financial Reporting and Control Section by January 20 of each year for the year ending the previous December 31. The annual FR 612 is the primary source of data for completion of the Annual Report table, Acquisition Costs and Net Book Value of Premises of the Federal Reserve Banks and Branches. An FR 612 report should also be submitted whenever property is purchased or sold. Instructions covering the preparation of the various parts of these forms that are not self-explanatory are included below.

  1. Vaults - Vaults refer only to vaults for the storage of money, securities and other valuables. The amount reported should include the actual construction cost of the vault itself, and the cost of items such as the following: vault door linings, and fixed equipment inside the vault such as safes, partitions, chests, compartments, and shelves. Do not include ordinary office equipment and other free-standing equipment such as file cabinets and mechanical storage retrieval equipment which are located within the vault.
  2. Depreciation Allowance - "Special Depreciation" should be used to report credits to depreciation other than those made as a result of the normal monthly recording of depreciation. An example would be a charge-off made to recognize the impairment of an asset.

Bank-owned Property Leased to Outside Tenants and non-Bank-owned Property Leased for Bank Use

Form FR 892 is dual purpose because it is used to report either the lease of Bank-owned property to outside tenants or the lease of non-Bank-owned property (outside space) for Bank use. Each office should submit an annual report, indicating lease or rental agreements in effect on December 31. A report should be submitted whether or not the office is leasing or renting space. In addition to operations and office space, the report should identify leases for functions such as warehouse, storage, screening, etc. If there are no leases in effect at the end of the calendar year, this should be indicated in the body of the report. Form FR 892 should reach the RBOPS Building Planning Section by January 20th of the year following the reporting period. In addition, a report should be submitted whenever a change occurs in a lease or rental agreement including identifying new and/or terminated leases.

The reporting form is designed to accommodate information concerning several leases or rental agreements. In submitting the data, each lease or agreement should be shown on a separate line of the report. If an office is both leasing Bank-owned property to outside tenants and leasing non-Bank-owned property for Bank use, separate reports should be submitted covering each type of transaction, rather than combining them on the same report.

Financial accounting and facility management staff are encouraged to collaborate to provide the appropriate information to complete the reports. Following are specific instructions concerning the data to be reported as of December 31 under the various columns of this report.

  1. Bank-owned Property Leased to Outside Tenants

    1. Location of space - Identify the location of the leased space within the building (i.e. third floor).
    2. Effective date of lease - The contractual date the lease begins (may not correspond to the date the first lease payment is due such as if rent abatement is part of the lease terms). Indicate if the lease amount is on a month-to-month basis.
    3. Expiration date of lease - The contractual date the lease expires (typically the date the last lease payment covers).
    4. Annual rental income - The annual rent due from the tenant for the reporting period for the base rent amount. Exclude additional rent to recover items such as reimbursement of increased operating cost (utilities, real estate taxes, etc.) or rent derived from the use of Bank spaces (auditoriums, training or conference rooms, etc.). Exclude amortization of leasehold improvements in the rent figure.
    5. Rented square feet - The amount of space rented that serves as the basis for the base rent in the lease agreement (defined in terms of rentable square feet).
    6. Tenant name and use of space - The name of the tenant on the lease documents and the function(s) for which the tenant intends to use the space.
    7. Bank-owned space available for lease - The total amount of space defined in terms of rentable square feet that is either currently leased or currently on the market for lease.
    8. Bank-occupied space - The total amount of space the Bank occupies for its use defined in terms of rentable square feet.
    9. Bank-unoccupied space - The total amount of space held in reserve for Bank use defined in terms of rentable square feet, while currently unoccupied, is not available for lease to outside tenants.
    10. Shared conference space - The amount of general conference space including conference center and auditorium spaces (general conference spaces typically included in "building common" category). Exclude conference, meeting, or training space dedicated to a specific Bank department or functional area.
    11. Comments - Any supplemental information that might be useful to the Board such as additional amounts to be paid over and above rental charge, fit-out allowances provided to the tenant, and special conditions of lease agreements such as amendments or early termination provisions.
  2. Non-Bank-owned Property Leased for Bank Use
    1. Location of space - Identify the property street address and the location of the leased space within the building (example: third floor).
    2. Effective date of lease - The contractual date the lease begins (may not correspond to the date the first lease payment is due such as if rent abatement is part of the lease terms). Indicate if the lease amount is on a month-to-month basis.
    3. Expiration date of lease - The contractual date the lease expires (typically the date the last lease payment covers).
    4. Annual rental cost - The annual rent due from the Bank for the reporting period for the base rent amount. Exclude additional rent to recover items such as reimbursement of increased operating cost (utilities, real estate taxes, etc.). Exclude amortization of leasehold improvements in the rent figure.
    5. Rented square feet - The amount of space rented that serves as the basis for the base rent in the lease agreement (defined in terms of rentable square feet).
    6. Use of space - The function(s) for which the Bank intends to use the space.
    7. Number of Bank employees - The number of Reserve Bank employees that occupy the leased space.
    8. Comments - Any supplemental information that might be useful to the Board such as additional amounts to be paid over and above rental charge, fit-out allowances provided to the Bank and special conditions of lease agreements such as amendments or early termination provisions.

60.95 Small and Disadvantaged Business (S&DB) Procurement Information

Until May 1999 when the Board issued S-letter 2593, which rescinded S-2492, each Federal Reserve Bank was required to submit an annual form FR 1425, a report of total contract dollars attributed to acquisitions from small and disadvantaged businesses and the proportion of contract dollars assigned to such businesses. The Reserve Banks are still required to maintain records suitable to provide ad hoc reports to the Board; however, the submission of an annual Form FR 1425 by February of each year is no longer required.

Summary Information should be captured as follows:

  1. Total Contract Awards - All contracts awarded and commitment dollars for the year, except for those awarded for personal services. The full liability of all purchase orders and contracts should be reported in the year in which they are executed, including the liability associated with all years of a multi-year contract. For any blanket or retainer type contracts that have an "open-ended" or "not-to-be-exceeded" dollar value, actual expenditures rather than commitment dollars should be reported.
  2. Small Business Awards - Contract awards, commitment dollars, and purchase orders to firms qualifying as a small business concern under the Small Business Act of 1953, as amended. Further, "small business" means a small business concern under Section 3 of the Small Business Act (15 U.S.C. Section 632) and the regulation promulgated thereto defining size standards for government procurement purposes, by SIC industry (13 C.F.R. Section 121.601 Et. S.E.Q.)
  3. Disadvantaged Business Awards4 - Contract awards to firms that qualify as economically disadvantaged (minority) business concerns eligible for assistance under Section 8(a) of the Small Business Act. "Small Disadvantaged Business" is small as defined above, and in addition meets the criteria stated in section 8(A) of the Small Business Act; that is a business that is: 1) at least 51% owned, and 2) managed and operated on a daily basis, by one or more socially and economically disadvantaged individuals. Such individuals are defined as those who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as a member of a group without regard to their individual qualities. African Americans, Hispanic Americans, Native Americans, and Asian Pacific Americans are among those considered socially disadvantaged. Women-owned businesses should not be reported in this category unless they are a small disadvantaged business as defined above.
  4. Supplemental Information should be captured as follows, if applicable.

    Set Asides - All contracts under $10,000 and any contracts over $10,000 for which proposals or bids were restricted to small and disadvantaged businesses. For proposals or bids to be restricted to small and disadvantaged businesses means that the list of vendors to which the proposal or bid is sent must be comprised of small and disadvantaged businesses only. If large businesses competitively bid on an item under or over $10,000 that is subsequently awarded to a small and disadvantaged business, the dollar value of this award should be reported as either a small business award or a disadvantaged business award.

60.96 RBOPS Financial Accounting Reports System (RFARS)5

Reserve Banks are required to submit certain financial accounting reports to the Board electronically using RFARS, the ATB, or email. The initial reports in the system include the following:

FR 415-Currency Held by Federal Reserve Banks (monthly)

FR 612-Book Value of Bank Premises and Other Real Estate (annually, and as property is purchased/sold). Note: RFARS was modified in 2007 to include construction in progress balances as part of the FR 612.

A link to RFARS is located on RBOPS webpage on the Board's website under "Surveys and Reporting Tools." It can be accessed by clicking on "RBOPS Financial Accounting Reporting Tool."

60.99 Reporting Requirements

All Districts
Daily Monthly Quarterly Semi-Annually Annually Special
FR 34-Front FR 34-Back
FR 415 1
FR 95 2
FR 411
Large Notes Redeemed (FR5) FR 962
FR 6572
FROP2
ATB2
 
All Offices
Daily Monthly Quarterly Semi-Annually Annually Special
FR 5 Monthly Notes
Redeemed (FR5)
    FR 34-Front
FR 34-Back
FR 6121
FR 892 3
FR 612 - When property is purchased or sold1
FR 892 - Upon changes to lease/rental agreements3

All reports are to be filed electronically unless otherwise indicated.

1. Submitted via RFARS  Return to table

2. Reserve Banks should make data available in Lawson ATB, and RBOPS Financial Reporting and Control Section will generate required reports to satisfy the reporting requirements. Return to table

3. Submit report, whether or not space is leased or rented, to RBOPS Building Planning Section  Return to table


References

1. Reserve Banks should ensure that the FR 95 agrees with the FR 34 balance of account 330-025. If, however, reconciliation to the FR 34 balance is necessary, the reconciliation should be provided to the RBOPS Financial Reporting and Control Section. Return to text

2. Reserve Banks should ensure that the FR 411 and FR 657, as appropriate, agree with the FR 34 balance of account 330-100. If, however, reconciliation to the FR 34 balance is necessary, the reconciliation should be provided to the RBOPS Financial Reporting and Control Section. Return to text

3. The earnings credits program was eliminated in July 2012. All earnings credits expired by July 2013; therefore, the FR 1217 was discontinued after the second quarter of 2013. Return to text

4. The Reserve Banks may, in appropriate circumstances and with advice from its General Counsel, institute a disadvantaged business program, so long as that program does not include provisions that would be unlawful if included in a disadvantaged business program of a federal agency. Return to text

5. The earnings credits program was eliminated in July 2012. All earnings credits expired by July 2013; therefore, the FR 1217 was discontinued after the second quarter of 2013. Return to text

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Last update: February 18, 2014